E140A - Session 19

Summary

Required Readings (Policy on Required Readings.)

• Case: Randy Hess (A)
• "Harnessing the Science of Persuasion" by Robert Cialdini (see here for directions on downloading this HBR article from October 2001); please pay careful attention to last section on page 79
• "Influence and Persuasion," Section 13.3, pages 302-303, Byers, Dorf, and Nelson
• "Influence and Leadership", Cialdini
• Watch the following short videos:

Suggested Reading

• Why We Lie, by Dan Ariely
• Drive, by Daniel Pink
• HBS Students Swear to be Ethical: A Promise to Be Ethical in an Era of Immorality
• "Integrating Ethics Into the Core of Your Startups: Why and How," by Vivek Wadhwa

Study Questions (Policy on Study Questions.)

1. What do the numbers tell us in this case?
2. Why is the MicroNet revenue important to the management of 3R? Why is it important to Randy Hess himself?
3. Put yourself in Randy's shoes. Your task is to bring about a legitimate solution to the MicroNet contract problem that also allows you to keep your job. Keep in mind that there is immense personal cost to quitting -- you don't want to leave Lubbock, you have few savings and a big mortgage on a house that has depreciated in value in the depressed Texas economy, you have a family depending on you for a steady income, and you like the responsibility you have at 3R and don't want to quit. What are your options? What is your elected approach to the problem? Regardless of which basic path you take (meet with Whitney, meet with the auditors, some combination of the two, etc.), be prepared to describe how you will approach the meeting. Include what you will say, how you will say it, the tone you will set, where you will have the meeting, etc., and the various possible outcomes for the meeting. What precisely will you do? Be prepared to role play with other classmates. Note that FASB is not law, but guidelines from a quasi-regulatory body in the USA.

Assignment

• As Hess, a summary of my basic approach to the MicroNet contract problem is to:

• In order to protect myself during my career from situations like this, I will consider these 1 or 2 specific tactics:

Note: For this assignment, each team will submit one entry for all team members. No individual posting.

Handouts